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Seniors Charging Out of Poverty While Nation Sinks
Poverty rate for seniors decreases to 9.8, nation
climbs to 12.7
Aug. 31, 2005 – There was good news about senior
citizens today in the U.S. Census Bureau report on income, poverty and
health insurance in 2004 – the percentage of seniors living in poverty
continues to decrease. The news was not so good for the rest of America
with the poverty rate increasing over 2003 and household income
unchanged.
|
All Races of Older
Americans Below 100% of Poverty
Numbers in thousands |
Age groups
|
All income levels
|
Below 100% of poverty
|
Percent below
|
55 to 59 years
|
16,763
|
1,416
|
8.4
|
60 to 64 years
|
12,769
|
1,326
|
10.4
|
65 years and over
|
35,213
|
3,457
|
9.8
|
65 to 74 years
|
18,388
|
1,721
|
9.4
|
75 years and over
|
16,825
|
1,736
|
10.3
|
There has been a dramatic change in the economic
status of senior citizens since 1959. Then, seniors 65 years of age and
older had by far the greatest percentage living in poverty – about 35
percent. That has steadily declined to only 9.8 percent in 2004. It was
10.2 percent in 2003. (See chart below.)
The number of seniors in poverty, however, stayed
the same in 2004 at 3.5 million.
The nation’s official poverty rate for all ages
rose from 12.5 percent in 2003 to 12.7 percent in 2004. There were 37.0
million people in poverty in 2004, up from 35.9 million in 2003.
The poverty rate in 2004 was 9.7 percentage points
lower than in 1959, the first year for which poverty estimates are
available. From the most recent trough, however, in 2000 both the number
and rate have risen for four consecutive years, from 31.6 million and
11.3 percent in 2000, to 37.0 million and 12.7 percent in 2004
respectively.
Both the poverty rate and number in poverty
increased for people 18 to 64 years old, which includes baby boomers,
(11.3 percent and 20.5 million in 2004, up from 10.8 percent and 19.4
million in 2003).
Real median household income for all Americans
remained unchanged between 2003 and 2004 at $44,389
Another statistic of importance to senior citizens
is the percentage of people covered by government health insurance
programs. This rose in 2004, from 26.6 percent to 27.2 percent, driven
by increases in the percentage of people with Medicaid coverage, from
12.4 percent in 2003 to 12.9 percent in 2004.
The percentage of the nation’s total population
without health insurance coverage remained stable, at 15.7 percent in
2004. The number of people with health insurance increased by 2.0
million to 245.3 million between 2003 and 2004, and the number without
such coverage rose by 800,000 to 45.8 million.
65 and Over Below Poverty Level
– 1959 - 2004 |
Year
|
Total
|
Number
Below
|
Percent
|
2004...
|
35,213
|
3,457
|
9.8
|
2003...
|
34,659
|
3,552
|
10.2
|
2002...
|
34,234
|
3,576
|
10.4
|
2001...
|
33,769
|
3,414
|
10.1
|
2000..
|
33,566
|
3,323
|
9.9
|
1999..
|
33,377
|
3,222
|
9.7
|
1998...
|
32,394
|
3,386
|
10.5
|
1997...
|
32,082
|
3,376
|
10.5
|
1996...
|
31,877
|
3,428
|
10.8
|
1995...
|
31,658
|
3,318
|
10.5
|
1994...
|
31,267
|
3,663
|
11.7
|
1993..
|
30,779
|
3,755
|
12.2
|
1992...
|
30,430
|
3,928
|
12.9
|
1991...
|
30,590
|
3,781
|
12.4
|
1990...
|
30,093
|
3,658
|
12.2
|
1989...
|
29,566
|
3,363
|
11.4
|
1988...
|
29,022
|
3,481
|
12.0
|
1987...
|
28,487
|
3,563
|
12.5
|
1986...
|
27,975
|
3,477
|
12.4
|
1985...
|
27,322
|
3,456
|
12.6
|
1984...
|
26,818
|
3,330
|
12.4
|
1983...
|
26,313
|
3,625
|
13.8
|
1982...
|
25,738
|
3,751
|
14.6
|
1981...
|
25,231
|
3,853
|
15.3
|
1980...
|
24,686
|
3,871
|
15.7
|
1979...
|
24,194
|
3,682
|
15.2
|
1978...
|
23,175
|
3,233
|
14.0
|
1977...
|
22,468
|
3,177
|
14.1
|
1976...
|
22,100
|
3,313
|
15.0
|
1975...
|
21,662
|
3,317
|
15.3
|
1974...
|
21,127
|
3,085
|
14.6
|
1973...
|
20,602
|
3,354
|
16.3
|
1972...
|
20,117
|
3,738
|
18.6
|
1971...
|
19,827
|
4,273
|
21.6
|
1970...
|
19,470
|
4,793
|
24.6
|
1969...
|
18,899
|
4,787
|
25.3
|
1968...
|
18,559
|
4,632
|
25.0
|
1967...
|
18,240
|
5,388
|
29.5
|
1966...
|
17,929
|
5,114
|
28.5
|
1965...
|
(NA)
|
(NA)
|
(NA)
|
1964...
|
(NA)
|
(NA)
|
(NA)
|
1963...
|
(NA)
|
(NA)
|
(NA)
|
1962...
|
(NA)
|
(NA)
|
(NA)
|
1961...
|
(NA)
|
(NA)
|
(NA)
|
1960...
|
(NA)
|
(NA)
|
(NA)
|
1959...
|
15,557
|
5,481
|
35.2
|
Other
Highlights:
Current Population
Survey
The 2005 Current Population Survey Annual Social
and Economic Supplement shows the following results:
Income
Overview
>> 2004 marked the second consecutive year in
which real median household income showed no change.
Race and Hispanic Origin
>> Real median household income did not change
between 2003 and 2004 for non-Hispanic whites, blacks or Asians or for
households with Hispanic householders.
>> Black households had the lowest median income
in 2004 ($30,134) among race groups. Asian households had the highest
median income ($57,518). The median income for non-Hispanic white
households was $48,977. Median income for Hispanic households was
$34,241.
>> Comparison of two-year moving averages
(2002-2003 and 2003-2004) showed that the real median income for
households with householders who reported American Indian and Alaska
native as their race was statistically unchanged. The same was true for
native Hawaiian and other Pacific islander households.
Regions
>> Real median household income remained
unchanged between 2003 and 2004 in three of the four census regions —
Northeast ($47,994), West ($47,680) and South ($40,773). The exception
was the Midwest, where income declined 2.8 percent, to $44,657. The
difference in income between the Northeast and West was not
statistically significant.
>> The South continued to have the lowest median
household income of all four regions. The Northeast and West had the
highest incomes among regions.
Nativity
>> Real median income remained unchanged for
native as well as for foreign-born households between 2003 and 2004.
Native and foreign-born households had a median income in 2004 of
$45,319 and $39,421, respectively.
Earnings
>> Real median earnings of men age 15 and older
who worked full-time, year-round declined 2.3 percent between 2003 and
2004, to $40,798. Women with similar work experience saw their earnings
decline by 1.0 percent, to $31,223. Reflecting the larger fall in the
earnings of men, the ratio of female-to-male earnings for full-time,
year-round workers was 77 cents on the dollar, up from 76 cents in 2003.
Poverty
Overview
>> There were 37.0 million people in poverty
(12.7 percent) in 2004, up from 35.9 million (12.5 percent) in 2003.
>> There were 7.9 million families in poverty in
2004, up from 7.6 million in 2003. The poverty rate for families
remained unchanged at 10.2 percent. The poverty rate and the number in
poverty showed no change for the different type of families.
>> As defined by the Office of Management and
Budget and updated for inflation using the Consumer Price Index, the
average poverty threshold for a family of four in 2004 was an income of
$19,307; for a family of three, $15,067; for a family of two, $12,334;
and for unrelated individuals, $9,645.
Race and Hispanic Origin (Race data refer to people
reporting a single race only.)
>> In 2004, the poverty rate declined for Asians
(9.8 percent in 2004, down from 11.8 percent in 2003), remained
unchanged for Hispanics (21.9 percent) and blacks (24.7 percent) and
rose for non-Hispanic whites (8.6 percent in 2004, up from 8.2 percent
in 2003).
>> The poverty rate of American Indians and
Alaska natives did not change when comparing two-year averages for
2002-2003 and 2003-2004. The same was true of native Hawaiians and other
Pacific islanders.
Age
>> For all children under 18, both the 2004
poverty rate (17.8 percent) and the number in poverty (13.0 million)
were unchanged from 2003.
>> The poverty rate increased for people 18 to
64 years old (from 10.8 percent in 2003 to 11.3 percent in 2004), but
declined for those age 65 and older (from 10.2 percent in 2003 to 9.8
percent in 2004).
Nativity
>> The native-born population had increases in
both their poverty rate (from 11.8 percent in 2003 to 12.1 percent in
2004) and their number in poverty (from 30.0 million in 2003 to 31.0
million in 2004). Foreign-born naturalized citizens had a 2004 poverty
rate of 9.8 percent, compared with 21.6 percent for those who had not
become citizens; both rates were unchanged from 2003.
Regions
>> The Midwest was the only region to show an
increase in their poverty rate – 11.6 percent in 2004, up from 10.7
percent in 2003. In 2004, the poverty rates for the Northeast (11.6
percent), South (14.1 percent) and West (12.6 percent) were unchanged
from 2003. The South continued to have the highest poverty rate.
Health Insurance Coverage
Overview
>> The percentage of the nation’s population
without health insurance coverage remained unchanged, at 15.7 percent in
2004.
>> The percentage of people covered by
employment-based health insurance declined from 60.4 percent in 2003 to
59.8 percent in 2004.
>> The percentage of people covered by
government health insurance programs rose in 2004, from 26.6 percent to
27.2 percent, driven by increases in the percentage of people with
Medicaid coverage, from 12.4 percent in 2003 to 12.9 percent in 2004.
>> The proportion and number of uninsured
children did not change in 2004, remaining at 11.2 percent or 8.3
million.
Race and Hispanic Origin (Race data refer to those
reporting a single race only.)
>> The uninsured rate in 2004 was 11.3 percent
for non-Hispanic whites and 19.7 percent for blacks, both unchanged from
2003. The uninsured rate for Asians declined from 18.8 percent to 16.8
percent.
>> The uninsured rate for Hispanics, who may be
of any race, was 32.7 percent in 2004 — unchanged from 2003.
>> Based on a three-year average (2002-2004),
29.0 percent of people who reported American Indian and Alaska native as
their race were without coverage, higher than the rate for native
Hawaiians and other Pacific islanders (21.8 percent) and for those of
other race groups, but lower than that of Hispanics. Comparisons of
two-year moving averages (2002-2003 and 2003-2004) showed that the
uninsured rates for American Indians and Alaska natives and for native
Hawaiians and other Pacific islanders did not change.
Nativity
>> While the proportion of the foreign-born
population without health insurance in 2004 (33.7 percent) was unchanged
from 2003, the rate for the native-born population increased (from 13.0
percent in 2003 to 13.3 percent in 2004).
Regions
>> The Midwest had the lowest uninsured rate in
2004 (at 11.9 percent), followed by the Northeast (13.2 percent), the
West (17.4 percent) and the South (18.3 percent).
American Community
Survey
The national findings regarding median income and
poverty rate are consistent between the CPS and the ACS. When examining
localities of 250,000 or more residents, the 2004 American Community
Survey shows the following results concerning income, poverty and
earnings:
Income
>> For counties of 250,000 or more people in
2004, median household income ranged from $88,133 in Fairfax County,
Va., to $24,778 in Hidalgo County, Texas. For cities of similar size,
median household incomes ranged from $71,765 in San Jose, Calif., to
$24,031 in Miami, Fla.
>> Among the 37 counties with populations of 1
million or more in 2004, 32 experienced no statistically significant
change in median household income from 2003 to 2004. Three counties
(King, Wash.; Palm Beach, Fla.; and Philadelphia, Pa.) experienced
declines; two counties (Fairfax, Va.; and Orange, Calif.) showed
increase.
Poverty
>> Among counties with 250,000 or more people in
2004, poverty rates ranged from 2.6 percent in Johnson, Kan., to 43.6
percent in Hidalgo, Texas. Among places of a similar size, the poverty
rates ranged from 7.4 percent for Anchorage, Alaska, to 33.6 percent for
Detroit.
>> Among the 37 counties with 1 million or more
people in 2004, seven experienced changes in their poverty rates between
2003 and 2004. Of those seven, Broward, Fla., and Oakland, Mich., showed
decreases, while Allegheny, Pa., Bronx, N.Y.; King, Wash.; Nassau, N.Y.;
and Wayne, Mich., had increases. Among the nine cities of this size, New
York, N.Y., saw its poverty rate rise, while poverty in the other places
remained unchanged.
Earnings
>> Connecticut, Maryland, Massachusetts, New
Jersey and the District of Columbia had among the highest median
earnings for both men and women who worked full-time, year-round.
>> In each of the 50 states and the District of
Columbia, women’s earnings were less than men’s in 2004. The District of
Columbia was the area with the greatest parity between men’s and women’s
earnings. There, women earned 91 cents for every dollar that men earned.
Earnings by Industry
>> Among the 20 major industry sectors, men
earned the most in 2004 in the management of companies and enterprises
sector ($77,754). For women, there were five sectors where median
earnings were about $40,000 or more: management of companies and
enterprises ($41,608); mining ($41,516); professional, scientific and
technical services ($41,398); utilities ($40,981); and information
($40,447).
>> In each of the major industry sectors, men
earned more than women. The sectors where the earnings gap between men
and women was the largest were management of companies and enterprises,
where women earned 54 cents for every dollar that men earned; finance
and insurance (57 cents); and professional, scientific and technical
services (60 cents).
Earnings by Occupation
>> Among the 22 major occupational groups, men
earned the most in legal occupations, such as lawyers, judges and law
clerks (more than $100,000). Among women, those in computer and
mathematical occupations had the highest median earnings ($56,585).
>> Among the major occupational groups, women’s
earnings as a percentage of men’s earnings were about 90 percent or
higher for the following groups: installation, maintenance and repair;
community and social services; construction and extraction; and
healthcare support. In contrast, women’s earnings as a percentage of
men’s earnings were about 65 percent or less for legal occupations,
sales and related occupations and healthcare practitioner and technical
occupations.
Estimates from the CPS ASEC may not match the
estimates from the ACS because of differences in the questionnaires,
data collection methodology, reference period, processing procedures,
etc. Both are surveys and are subject to sampling and nonsampling
errors. All comparisons made in the report have been tested and found to
be statistically significant at the 90-percent confidence level, unless
otherwise noted.
These findings are contained in the
Income, Poverty, and Health Insurance Coverage in the United States:
2004 [PDF] report. The report’s data were compiled from information
collected in the 2005 Annual Social and Economic Supplement (ASEC) to
the Current Population Survey (CPS).
Also released today were tabulations from the 2004
American Community Survey (ACS), some of which are included in the
report:
Income, Earnings and Poverty from the 2004 American Community Survey
[PDF].
The ACS is a new tool. In the past, local
policymakers had to choose between using old local data from the last
census and new national data. The ACS provides a new level of local
timeliness, giving policymakers current local data. Gathered from the
largest household survey in the United States, the ACS data herein is
based on the collection of information from 800,000 addresses sampled
during the 2004 survey period.
The fact sheet,
Differences Between the Income and Poverty Estimates From the American
Community Survey and the Current Population Survey Annual Social and
Economic Supplement, provides information on the differences in
concepts and purposes of the ACS and the CPS.
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